How tax breaks weigh on a small business owner's decision to set up operations

New businesses have a number of important tasks on their plate from registering a business name to setting up business systems to process payroll.

But before any of those steps, financially savvy business owners are likely to consider tax ramifications of setting up their small business in one province or another.

According to new data from the Canadian Federation of Independent Business (CFIB), Quebec and Ontario have the least "small business-friendly provincial tax systems."

CFIB's Small Business Provincial Tax Index examines 65 indicators in five major areas of tax policy to determine how provinces benefit or hinder small businesses setting up shop.

Based on the results, Alberta and New Brunswick score the top spots.

Citing the importance small businesses have on the financial welfare of local communities, CFIB president Catherine Swift said, "It is important that provincial policy makers understand the need to foster a mutually beneficial relationship with local business owners."

"When provincial governments support small business, they're indirectly supporting themselves," she added.

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